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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG)

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To: Suzanne Newsome who wrote (30140)	6/4/1999 7:39:00 PM
From: Zeev Hed	Read Replies (2) of 44908

Suzanne, if you are right about the other deals being "direct sales", then indeed you have a point about the margins. I am not sure how distributors will like the company taking the cream and leaving them the small deals, but that is part of the problem of "distribution management". Maybe our friend can comment on servicing accounts in his territory that are sold directly from head quarter. I am sure that if the local distributor is asked to service locally "national accounts" he is compensated for it. If not, the company itself must service these accounts thus incurring the infrastructure. But it should be doable for less than the $5/card and leave the company at least margins similar that the distributors will get (I believe that was about $2.5 per card?). If this is executed, yes it will make a contribution to going positive cash flow. Do we have a "model" on expected fractionation of the cards sold between distributors and the company? Zeev

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